The demerged entity of NMDC Ltd. reported its results for the June quarter after market hours on Friday, August 14. During the quarter, NMDC Steel’s operating performance was weak on a year-on-year basis, even as the company’s topline and profitability saw an increase.
NMDC Steel’s profit in the June quarter came in at ₹50.51 crore, up 97.6% from the previous year’s ₹25.56 crore.
Its revenue increased by 8.8% to ₹3,661.84 crore in the first quarter compared to ₹3,365. 22 crore in the prior fiscal.
However, the PSU company’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) declined by 2% to ₹399.56 crore from ₹407.66 crore in the June quarter last year, while EBITDA margins narrowed to 10.9% from 12.1% last year.
The demerged NMDC entity listed on the exchanges in February 2023 at ₹31.75 apiece. It has risen around 38% from those levels.
At the end of the June quarter, NMDC had a 60.71% stake in NMDC Steel, while the rest belonged to public shareholders.Shares of NMDC Steel are trading 7.3% lower on Monday at ₹41.22. With this move, the stock has turned negative on a year-to-date basis, and is now down 6.5% for the year.
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